JPY started the Asian day at Y99.24 following a relatively narrow Y99.10/60 range in the US last night. Early trade saw the pair stuck in a Y99.14 to Y99.31 range amid an offered dollar tone following remarks from Fed chair nominee Janet Yellen. The release of Japan’s Q3 GDP data triggered only a miniscule move higher in dollar-yen, though the pair picked up some upward momentum after Japanese stocks opened higher. Following that, remarks by Fed chairman Ben Bernanke and Japanese economy minister Amari had dollar-yen in a minor tug-of-war but the pair eventually broke higher as the dollar recovered from the earlier dip. Dollar-yen punched through last night’s high in the late morning and peaked at Y99.73. Some traders pointed to reported comments from finance minister Aso on Japan’s need to be able to intervene in FX markets ascontributing to the yen’s losses. Euro-yen’s moves meanwhile mirrored dollar-yen’s, with the cross opening at Y133.85 and then rising early to Y134.10 before then extending the gains to Y134.33 in the late morning. Dollar-yen was last at Y99.69 with the cross at Y134.24. Immediate dollar-yen support is expected at Y99.07/00, with stops on a break below the latter mark.
